Total net sales for the second quarter of 2014 were $6.3 million,
compared with $4.2 million for the second quarter of 2013. For the first
quarter of 2014, SPI Solar reported total net sales of $3.6 million.

Total cost of goods sold for the second quarter of 2014 was $5.8
million, compared with $3.3 million for the second quarter of 2013.
Total cost of goods sold for the first quarter of 2014 was $3.4 million.

Total operating expenses for the second quarter of 2014 were $1.2
million, compared with $7.4 million for the second quarter of 2013.
Operating expenses for the first quarter of 2014 were $1.3 million.

During the second quarter of 2014, SPI Solar entered into an agreement
with a non-U.S. investor and issued an $11 million convertible bond,
bearing no interest. The convertible bond includes a $10.3 million
beneficial conversion feature, which was recognized separately at
issuance, resulting in a discount on the convertible bond, which will be
amortized into interest expense. Interest expense of $0.7 million was
recorded during the second quarter of 2014.

Net loss for the second quarter of 2014 was $1.3 million, or ($0.01) per
basic and diluted share. This compared with a net loss of $6.8 million,
or ($0.03) per basic and diluted share, for the second quarter of 2013,
and with a net loss of $0.8 million, or ($0.00) per basic and diluted
share, for the first quarter of 2014.

"During the quarter, we made significant progress in strengthening SPI
as a platform for growth," said Xiaofeng Peng, Chairman of SPI.
"Following the close of the quarter, we completed the previously
announced private placement of $21.75 million and entered into a new
private placement agreement for an additional $25.0 million.
Importantly, these placements will dramatically improve our financial
position and balance sheet to support our ambitious global growth
strategy,” continued Peng. "In addition, we continued to work toward
resuming growth of our global pipeline of solar PV projects, in
conjunction with the roll out of our innovative Yes!® Solar
solution targeting the high-growth residential segment,” Peng added.
"Finally, we established for SPI during this quarter a strong foundation
for a number of other important initiatives currently underway which we
plan to capitalize on in the coming quarters."

Second-Quarter 2014 and Recent Updates:

Announced joint venture agreement with WIRCON GmbH to develop solar PV
projects in the UK

Announced that the company had entered into a definitive purchase
agreement for the sale of $25.0 million of common stock in a private
placement

Entered into an agreement through SPI Solar’s wholly-owned subsidiary,
Xinyu Xinwei New Energy Co., LTD. (“Xinwei”), to build and develop a
50 megawatt photovoltaic project in Fenyi County, China; subsequently
announced an agreement for the sale and transfer of this project

Announced that Xinwei had entered into an agreement for the proposed
construction of a 21 megawatt project in Jiangxi Province, China

This release may contain certain “forward-looking statements” relating
to the business of SPI Solar, its subsidiaries and the solar industry,
which can be identified by the use of forward-looking terminology such
as “believes", “expects” or similar expressions. These statements
involve known and unknown risks and uncertainties, including, but are
not limited to, the ability of SPI Solar to complete its private
placement of shares of common stock, generate new EPC projects and its
ability to obtain funding for such projects, general business
conditions, managing growth, and political and other business risk. All
forward-looking statements are expressly qualified in their entirety by
this cautionary statement and the risks and other factors detailed in
the company's reports filed with the Securities and Exchange Commission.
The company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under applicable
securities law.

SOLAR POWER, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for share data)

June 30,

December 31,

2014

2013

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

5,854

$

1,031

Accounts receivable, net of allowance of $5,887, respectively

4,348

6,260

Accounts receivable, related party

3,855

3,905

Notes receivable

-

8,450

Inventories, net

180

23

Prepaid expenses and other current assets

3,006

4,458

Total current assets

17,243

24,127

Intangible assets

846

1,132

Restricted cash

160

400

Accounts receivable, noncurrent

11,345

12,349

Notes receivable, noncurrent

13,668

13,668

Notes receivable, noncurrent, related party

8,450

-

Other assets, noncurrent, related party

998

-

Investment in affiliates

8,912

7,536

Property, plant and equipment at cost, net

11,226

11,752

Total assets

$

72,848

$

70,964

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

Current liabilities:

Accounts payable

$

3,325

$

3,919

Accounts payable, related party

38,665

50,907

Line of credit

-

4,250

Convertible bond, net

1,369

-

Accrued liabilities

738

741

Billings in excess of costs and estimated earnings on uncompleted
contracts